Thrivent Small-Mid Cap Equity ETF (TSME) Stock Analysis

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• A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Thrivent Small-Mid Cap Equity ETF (TSME) Financial Services Profile

Thrivent Small-Mid Cap Equity ETF (TSME) provides investors with exposure to the small- and mid-cap segments of the U.S. equity market, tracking indices like the Russell 2500, S&P MidCap 400, and S&P SmallCap 600. With a market cap of $629M, it offers diversification within this market capitalization range.

What Is the Investment Thesis for TSME?

TSME offers a straightforward investment proposition: access to the small- and mid-cap U.S. equity market. With a beta of 1.39, the fund exhibits higher volatility compared to the broader market, which may appeal to investors seeking enhanced returns, but also implies greater risk. The absence of a dividend yield may deter income-focused investors. Growth catalysts for TSME include continued economic expansion, which often benefits smaller companies, and increased investor interest in small- and mid-cap stocks. Key risks include economic downturns, which can disproportionately impact smaller companies, and fluctuations in market sentiment. The fund's value is primarily driven by the performance of its underlying holdings and the overall market environment.

Based on FMP financials and quantitative analysis

TSME Key Highlights

Market capitalization of $629M, indicating a relatively small size within the ETF market.

• Beta of 1.39, suggesting higher volatility compared to the overall market.
• No dividend yield, making it less attractive to income-focused investors.
• Investment strategy focused on replicating the performance of small- and mid-cap indices.
• Passive management style, resulting in potentially lower expense ratios compared to actively managed funds.

Who Are TSME's Competitors?

TSME is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are TSME's Key Strengths?

Diversified exposure to small- and mid-cap U.S. equities.

• Low expense ratio due to passive management.
• Intraday liquidity and ease of trading.
• Established brand name of Thrivent.

What Are TSME's Weaknesses?

Higher volatility compared to large-cap stocks.

• No dividend yield, which may deter income-focused investors.
• Performance tied to the overall small- and mid-cap market, limiting potential for outperformance.
• Susceptible to economic downturns and market sentiment.

What Could Drive TSME Stock Higher?

Potential for increased investor interest in small- and mid-cap stocks during economic expansion.

• Continued growth in the ETF market, driving demand for diversified investment solutions.
• Strategic partnerships to expand distribution and reach new investor segments.

What Are the Key Risks for TSME?

Economic downturns that disproportionately impact smaller companies.

• Changes in market sentiment and investor preferences.
• Increased competition from other ETFs targeting the same market segment.
• Higher volatility compared to large-cap stocks.

What Are the Growth Opportunities for TSME?

• Increased adoption of ETFs: The ETF market is experiencing substantial growth as investors increasingly favor low-cost, diversified investment vehicles. TSME can capitalize on this trend by attracting investors seeking exposure to small- and mid-cap equities through a convenient ETF structure.
• Rising interest in small- and mid-cap stocks: Small- and mid-cap stocks often outperform large-cap stocks during periods of economic expansion. As investors seek higher growth potential, TSME can benefit from increased allocations to this asset class. The Russell 2000 index, a benchmark for small-cap stocks, has historically delivered strong returns, attracting investors looking for opportunities beyond large-cap equities.
• Expansion of thematic ETFs: TSME can explore the development of thematic ETFs focused on specific sectors or investment themes within the small- and mid-cap universe. This could include ETFs focused on technology, healthcare, or sustainable investing. Thematic ETFs are gaining popularity as investors seek to align their investments with specific values or trends, creating opportunities for TSME to innovate and differentiate its product offerings.
• Strategic partnerships: TSME can collaborate with financial advisors, wealth management firms, and institutional investors to expand its distribution network and reach a wider audience. Partnerships can provide access to new investor segments and increase brand awareness. Strategic alliances can also involve the development of customized investment solutions tailored to the specific needs of partners and their clients.
• Global expansion: While TSME currently focuses on the U.S. market, it can explore opportunities to expand its reach to international investors. This could involve listing the ETF on foreign exchanges or developing partnerships with international distributors. The global demand for U.S. equities remains strong, and TSME can capitalize on this trend by making its ETF accessible to investors around the world.

What Are TSME's Competitive Advantages?

• Low cost structure due to passive management.
• Diversified exposure to a broad range of small- and mid-cap companies.
• Intraday liquidity and ease of trading on major exchanges.
• Established brand name and reputation of Thrivent.

What Does TSME Do?

Thrivent Small-Mid Cap Equity ETF (TSME) is designed to provide investors with a convenient way to access the performance of small- and mid-sized companies in the United States. The fund operates by investing primarily in companies whose market capitalizations fall within the range of widely recognized small- and mid-cap indices, including the Russell 2500 Index, the S&P MidCap 400 Index, and the S&P SmallCap 600 Index. This approach allows TSME to offer diversified exposure to a segment of the market that may offer growth opportunities not always found in larger, more established companies. TSME's investment strategy focuses on replicating the overall performance of the targeted indices, rather than attempting to outperform them through active stock selection. This passive management style typically results in lower expense ratios compared to actively managed funds, making it a noteworthy option for cost-conscious investors. The ETF's holdings reflect the composition of the underlying indices, with adjustments made periodically to maintain alignment. As an exchange-traded fund, TSME offers intraday liquidity, meaning that shares can be bought and sold throughout the trading day on major stock exchanges. This feature provides investors with flexibility in managing their positions and responding to market conditions. The fund is managed by Thrivent, a financial services organization with a history of providing investment solutions to individuals and institutions.

What Products and Services Does TSME Offer?

• Invests primarily in small- and mid-capitalization companies.
• Tracks widely known small- and mid-cap indices like the Russell 2500, S&P MidCap 400, and S&P SmallCap 600.
• Provides investors with exposure to a diversified portfolio of U.S. equities.
• Offers intraday liquidity through exchange trading.
• Operates as a passively managed ETF, aiming to replicate index performance.
• Offers a cost-effective way to access the small- and mid-cap market segment.

How Does TSME Make Money?

• Generates revenue through management fees charged to investors.
• Fees are based on a percentage of the fund's assets under management (AUM).
• Operates as a passively managed fund, minimizing active trading costs.

What Industry Does TSME Operate In?

TSME operates within the asset management industry, specifically focusing on exchange-traded funds (ETFs). The ETF market has experienced significant growth in recent years, driven by increasing investor demand for low-cost, diversified investment products. TSME competes with other ETFs that target the small- and mid-cap segments of the U.S. equity market. The competitive landscape includes both broad-based ETFs and those with more specialized investment strategies. The growth of the ETF market is expected to continue, supported by trends such as the increasing adoption of passive investing and the ongoing demand for diversified investment solutions.

Who Are TSME's Key Customers?

• Individual investors seeking diversified exposure to small- and mid-cap stocks.
• Financial advisors using ETFs as building blocks in client portfolios.
• Institutional investors looking for efficient ways to access the U.S. equity market.
• Retirement plans and other investment vehicles.

Thrivent Small-Mid Cap Equity ETF (TSME) Valuation Context

Valued at $629M, TSME is classified as a small-cap stock. Relative to its peer group, TSME's quantitative score of 47/100 is roughly in line with the peer average of 45/100.

Return on equity for Thrivent Small-Mid Cap Equity ETF stands at 0.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.0%, showing how much profit it generates from its asset base. TSME trades at a trailing price-to-earnings ratio of 0.00, below the Financial Services sector average of ~18x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.

TSME Financials

TSME Latest News

No recent news available for TSME.

TSME Analyst Consensus

TSME MoonshotScore

Thrivent Small-Mid Cap Equity ETF Financial Services Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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